BURMA (MYANMAR)

Union of Burma

Pyidaungzu Myanma Naingngandaw

COUNTRY OVERVIEW

LOCATION AND SIZE.

Situated between Indian and Thailand, Burma is a southeast Asian nation.
From the borders of India and China in the north, the country extends
into the Andaman Sea and the Bay of Bengal in the south. The country
also shares borders with Laos and Bangladesh. Slightly smaller than the
state of Texas, Burma has an area of 678,500 square kilometers (261,969
square miles). Its land borders are 5,876 kilometers (3,651 miles) long
and its coastline, home to many excellent natural harbors, is 1,930
kilometers (1,199 miles) long. Burma's capital, Rangoon (also
known as Yangon), is in the south. Mandalay, Moulmein, Pegu, Bassein,
Taunggyi, Sittwe, and Myanwa are the other most important cities in the
country.

POPULATION.

The population of Burma, according to July 2000 estimates, was
41,734,853. A high mortality rate caused by AIDS is factored into this
estimate; it is estimated that at least 1 million people are infected
with HIV, the virus that causes AIDS. This high mortality rate from AIDS
has slowed population growth to a projected rate of growth of 0.64
percent. The country registered a birth rate of 20.61 per 1000
population and a death rate of 12.35 per 1000; consequently, the
population of Burma in 2015 is expected to be 45,925,967.

In the past, the government of Burma sought to restrict
emigration
(people leaving the country) and
immigration
(people settling there from outside the country). Burmese authorities
negotiated with India to reduce the number of people of Indian origin in
the country. As a result, Burma
repatriated
about 100,000 people to India between 1963 and 1965. Thousands of
Burmese also fled to neighboring countries to escape military repression
and armed conflicts in the ethnic minority areas.

Ethnic diversity is an interesting feature of the Burmese population.
Burmans, an ethnic group related to the Tibetans, constitute the
majority at 68 percent of the population. Shan (9 percent), Karen (7
percent), Rakhine (4 percent), Chinese (3 percent), Mon (2 percent),
Indian (2 percent), and other ethnic groups account for the rest of the
population mix. Buddhism is the major religion, with 89 percent of the
population; there are minorities of Christians and Muslims. A majority
of the people, 65 percent, are between the ages of 15 and 64. Only 5
percent of the population is older than 65, while 30 percent of the
population is under 14 years of age. This is in sharp contrast to Japan,
west European countries, and the United States where the number of older
people in the population is much higher. The density of population is
about 65.2 per square kilometer (169 per square mile). With agriculture
as the most important occupation, a majority of the people live in the
rural areas and only an estimated 27.3 percent (1999) reside in cities.

LIVESTOCK

. Burmese farmers raise a variety of animals including cattle, water
buffalo, goats, sheep, chickens, and pigs. Oxen and water buffalo serve
as draught animals in agriculture and for rural transportation. The GDP
share of the livestock has increased slightly during the past decade.
Most of the cattle are raised in the dry zone in the north.

FORESTRY

. Burma is rich in forests and woodland. While its neighbors, India,
China and Thailand, have already depleted their forests, Burma is still
regarded as the "last frontier of biodiversity in Asia."
(Biodiversity refers to ecosystems that are rich, varied, and largely
unpolluted or tampered with by human development.) Most of the timbers,
especially teakwood, consumed in these Asian countries come from Burma,
although most of these exports are illegal. In their search for precious
foreign exchange, the military junta is engaged in indiscriminate
destruction of forests. Deforestation increases erosion and landslides
and threatens the lives of many already endangered species in the rain
forests.

Burma is the leading supplier of teak in the international market. In
addition to hardwoods, Burma also produces large quantities of bamboo in
the delta regions and in the areas of heavy rainfall. Elephants and
water buffalo play a key role in hauling teak and other hardwoods.

FISHING

. Burma is blessed with some of the world's most bountiful
fishing grounds that extend from the Bay of Bengal to the Gulf of
Martaban. Fish, often dried and salted, is part of Burmese cooking and
is the most important source of protein in the diet. The government took
many steps to encourage deep-sea fishing although the people prefer
fresh-water fish. There has been a steady increase in the catch since
the 1980s. Since 1989, Thai companies have been given permission to fish
in the Burma waters. They use a modernized trawler fleet to harvest
fish. The government also encourages fresh-water fish farms with a view
to increasing fish production. Moreover, the Tenasserim area is home to
some of world's finest pearls. As a result, the export value of
fish and fish products alone has gone up from 159.4 million kyats in
1995-1996 to 227.8 million in 1996-97.

MINING

. Although their GDP contribution is not very significant, mineral
products are important in earning foreign exchange. Burma has large
amounts of mineral deposits. They include tin, zinc, copper, tungsten,
lead, silver, gold, iron and antimony. Coal, natural gas, and crude oil
are also extracted. Jade, rubies, sapphires, and gold are also found in
Burma. Should the country ever open to foreign investment there may be
significant opportunities for development in this sector.

OIL AND NATURAL GAS

. Burma's petroleum industry dates back to pre-independence days.
During 1963-1964,
the government took complete control of petroleum exploration,
extraction, and purification. Petroleum is found in the Irrawaddy basin,
the delta region, and at offshore sites. Burma is self-sufficient in
oil.

The discovery of natural gas reserves in the Gulf of Martaban added to
Burma's energy reserve. In 1986 the country produced 32,600
million cubic feet of natural gas. Burma also has large deposits of
natural gas in the Andaman off-shore fields. In its efforts to
facilitate the growth of its energy sector, the government built the
Yadana natural gas pipeline, connecting natural gas stores off the
Andaman Islands and Thailand, with the help of Unocal and Total, 2
international petroleum companies. According to government estimates,
the energy sector grew approximately 88 percent in 1998. Government
projections showed a 77 percent growth for the year 1999.

SERVICES

With just 30 percent of GDP and 25 percent of the workforce, the
services sector is not a dominant part of the economy as it often is in
developed countries.

TOURISM.

Like the cash-strapped countries of Jamaica and Cuba, Burma is also
actively promoting itself as an island paradise to increase tourism.
Both the government and private enterprises are heavily engaged in the
tourism industry. In order to attract tourists, the country has improved
roads, built international standard hotels, and other facilities. In
1988, roughly 40,000 foreigners visited the country, although following
the suppression of the democracy movement that same year, tourism
decreased. Between 1993 and 1996, tourism once again revived. The
government proclaimed 1996 as "Visit Burma Year" and hoped
to attract 500,000 tourists. However, only 180,000 people showed up. In
the 1997-98 fiscal year 191,000 tourists visited the country. Both the
government and the private sector, having invested heavily in new
tourist facilities, were disappointed.

Nevertheless, Burma—the land of Buddhist pagodas—has great
tourism potential. Rangoon, Mandalay, Pagan, Pegu, and Tawnggys, with
their palaces and shrines and pagodas, are the centers of tourism.
However, the tense political situation, human rights violations, and
boycotts by the international community have deterred many people from
visiting. Tourism, so far, makes up only a small percentage of the GDP.

FINANCE.

During the post-independence days, most financial institutions were
private. In 1964, the military junta nationalized all of the
country's 24 banks. In their place, the government created 4
state banks. In 1990, the financial sector was revamped under the
provisions of the Central Bank of Myanmar Law. Since then the financial
institutions are the Central Bank of Myanmar, the Myanmar Agricultural
and Rural Development Bank, the Myanma Economic Bank, the Myanma Foreign
Trade Bank, the Myanma Industrial and Commercial Bank, the Myanma Small
Loans Enterprise, and Myanmar Insurance. The 1990 law also allowed for
both private and foreign banks. As a result, by February 1996, 16
private banks were formed, most of them in Rangoon. During the same
period, more than 20 foreign banks opened branches or offices in
Myanmar.

The banking sector is still underdeveloped. The people have yet to
maintain regular banking habits. The
inflation rate
is so high that the real rate of interest does not encourage deposits.
But without deposits, banks cannot provide credit. In contrast, during
the 1970s, when the interest rate was raised, people deposited more
money in the banks.

The Burma Securities Exchange was founded in 1996 as a joint venture
between Japan's Daiwa Institute of Research and Myanma Economic
Bank. The financial sector contributes only a small percentage of the
GDP.